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Pepper Money’s General Manager, Mortgages and Commercial Lending, Barry Saoud says brokers should capitalise on commercial lending's lucrative horizon.
What are the opportunities for brokers in the commercial lending space?
“There are some strong signs that the commercial property market is positioned for growth. Not only do reports show that the number of mortgage brokers writing commercial finance loans has continued to increase by almost 15%, but the value of commercial loans settled by mortgage brokers recorded its highest ever value at $15.98 billion, up 55% year-on-year.” 1
“While it’s great to see the momentum for brokers eager to diversify into commercial property lending continuing to build, the total number is still under 30%.1 This data is describing opportunity.”
“97% of the 2.5 million businesses in Australia are small businesses. And as a broker who has access to many of these operators and owners – there’s endless possibilities.”2
“They can diversify their revenue stream and build stronger relationships with clients, not just for home loans but for those looking for business solutions as well.”
“Whether customers want to buy an investment property or commercial property to operate their business out of, or access equity and cashflow to support them in growing their business, we have a diverse range of flexible commercial solutions to ensure every customer has options.”
How easy is it for brokers to diversify into commercial lending?
“As more and more mortgage brokers turn to commercial lending, word is spreading that it is not as difficult to do as some brokers think. In fact, it’s as simple as doing a home loan – or even simpler.”
“I meet quite a lot of commercial brokers that only deal with commercial, and they think that dealing with a residential loan would be a time-consuming and complicated process. It goes to show that the only obstacle is flawed perceptions – but when we unlock a new level of confidence with commercial lending, we open up new opportunities for brokers.”
“And we are laser focused on developing broker’s confidence in commercial lending. We realise the way to achieve this is to make commercial lending as accessible as possible, which is why we are investing in support, education, and tools to make the product easy for brokers and their clients.”
“Are there nuances in a commercial loan? Yes. But Pepper Money has made it easier than ever. It’s as simple as talking to your BDM and you can get started that day. It’s guaranteed to be a rewarding outcome for you and your clients.”
How are Pepper Money’s products helping brokers and commercial borrowers?
“With more than 20 years of specialist and SME knowledge, dedicated BDMs around Australia and a ‘real-life approach to making deals happen, we’ve introduced a number of enhancements that are real game changers for business owners and brokers.”
We recently launched a Red Hot rates package to help commercial borrowers achieve their goals with reduced rates until 13 October 2023 - including a leading Alt Doc rate in market.
“We’ve also removed clawbacks on all commercial property loans and made it even easier with only a single form of income verification required on our commercial Prime Alt Doc offering. We also simplified our fee structures on commercial products and reduced legal charges to make it even easier to partner with Pepper Money.
“We’re also expanding our ability to fund commercial properties across Australia including non-metropolitan and regional areas to open up more opportunities for brokers and more customers Australia wide.”
As we inch closer to the end of the year, and into 2024, we’re excited to continue evolving our lending options to meet the growing demand for commercial property.
To find out more about Pepper Money’s commercial lending options, visit the Pepper Money broker hub today: pepperbroker.com.au
1. https://www.mfaa.com.au/professional-development/research/industry-intelligence-service-report
2. https://www.money.com.au/research/australian-business-statistics#:~:text=The%20business%20sector%20in%20Australia,%2C%20employing%2020%2D199%20employees.
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